Chapter 14 learning curve

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

During a period of deflation:

lenders benefit, because they are repaid dollars with greater real value than they anticipated when signing the loan contract.

The _____ interest rate is the nominal interest rate minus the rate of inflation.

real

Not included in GDP: Nonproduction transactions

stocks, bonds, real estate, OR used goods

Shoe-leather costs

the increased costs of transactions caused by inflation

The broadest measure of unemployment is the:

u6

2 approaches to calculating GDP

Expenditures Approach and Income Approach

3 things that are not included in GDP

Intermediate good, non production transactions, non-market illegal activities

Which factor will cause the natural rate of unemployment to decrease?

an increase in the median age of the labor force

real income

income divided by the price level

f policy is used to reduce unemployment below the natural rate _____ occurs

inflation rates

The sum of employment and unemployment is equal to the:

labor force

Inflation can mean either an increase in the

money supply or price level

structural unemployment

more people are seeking jobs in a particular labor market than there are jobs available at the current wage rate, even when the economy is at the peak of the business cycle.

if Chin loans Pedro $2,000 at 6 percent interest, and there is an unexpected inflation of 7 percent, then:

pedro benefits

menu cost

the real cost of changing a listed price

Income Approach to GDP

the sum of all earnings by households and firms in a year Income= r+w+ir+PR

Expenditures Approach to GDP

the sum of all money spent on buying the GDP C+I+G+(X-M)

natural rate of unemployment

the unemployment rate that arises from the effects of frictional plus structural unemployment.

During a period of deflation, lenders benefit because

they are repaid dollars w greater real value then they anticipated when signing loans

frictional unemployment

unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills

The relationship between the growth of the economy and unemployment is such that as the economy grows, the unemployment rate:

usually falls but could rise

unemployment

workers that are actively looking for a job but aren't working

Extremely low unemployment rates have proved to be more costly than valuable because an economy operating at near full employment will cause two important things to happen:

1. Aggregate demand, 2. Tight labor market

Calculate unemployment rate

= #unemployed/#in labor force times 100

Who is in labor force participation rate? 4

Above 16, able and willing to work, not institutionalized, not in military, or school

Utopia has recently experienced a high rate of inflation and proposes changing its currency from the Utopian dollar to the Utopian mark at an exchange rate of 5.0 Utopian dollars per Utopian mark. Suppose Andrea currently has a debt of $100,000 Utopian. Which statement is true?

Andrea's debt will now equal to 20,000 utopian marks

Unit-of-account costs

costs that arise from the way inflation makes money a less reliable unit of measurement.

Cyclical unemployment tends to _____ during the expansion phase of the business cycle.

decrease

A high level of _____ encourages people to hold more money.

deflation

Anticipated inflation can inflict

real costs in the economy

lenders benefit, because they are repaid dollars with greater real value than they anticipated when signing the loan contract.

set so that there is a persistent surplus in the labor market.

If the government establishes a minimum wage above the equilibrium wage, there may be some _____ unemployment.

structural

When firms pay efficiency wages, _____ unemployment may occur.

structural

_______ unemployment is caused by minimum wage

structural

Cynical Unemployment

the deviation of the actual rate of unemployment from the natural rate due to downturns in the business cycle.

The unemployment rate

the percent of people in the labor force who look for jobs but are no working


Set pelajaran terkait

Features of Operating Systems Quiz

View Set

Biochemistry Chapter 2 study set

View Set

Chapter 2- Collecting Subjective Data: The Interview and Health History

View Set

Microbiology 295 Connect Lab Questions

View Set

Legal Aspects of Real Estate Ch. 3 - Estates and Ownership

View Set

Intrapartum and Postpartum Care of Cesarean Birth Families

View Set

Micro-Economics Test 1 Study Guide

View Set

Nursing Application: Bronchodilators

View Set